You have been provided with the following information about three public sector projects with a breakdown of
Question:
You have been provided with the following information about three public sector projects with a breakdown of the Referent Group net benefits (unweighted) among the three Referent Group (RG) categories (in $):
RG 1 RG 2 RG 3 Project A 30 30 60 Project B 40 20 40 Project C 40 30 10 A decision-maker considers that all three projects have equivalent weighted net benefits, and equal to the net benefit of a fourth project, after weighting for its distributional effects. If the weighted net benefit of the latter project is calculated to be $100, find the implicit values of the three distribution weights for RG1, RG2, and RG3, on the assumption that these weights have an average value of 1.
Step by Step Answer:
Cost Benefit Analysis
ISBN: 9781032320755
3rd Edition
Authors: Harry F. Campbell, Richard P.C. Brown